Eaton Announces Intent to Spin Off (Most of) Its Lighting Business
Ireland based Power management company Eaton (NYSE:ETN), today announced that it intends to pursue a tax-free spin-off of its Lighting business (consisting mainly of the 2012 acquisition of Cooper Industries). The spin-off will create an independent, publicly traded company and is expected to be completed by the end of 2019. Goldman Sachs is serving as Eaton’s financial advisor on the transaction.
The Lighting business is one of the world’s leading providers of LED lighting and control solutions. Its broad range of innovative products and systems are designed to maximize performance and energy efficiency. The business, which had sales of $1.7 billion in 2018, serves customers in commercial, industrial, residential and municipal markets.
According to a letter sent by the Lighting business President Kraig Kasler, included in the spin-off are Eaton’s Lighting business, global Airport Lighting business, and the Mains Lighting and Intrusion Systems businesses that operate primarily in Europe and the Middle East. The Crouse-Hinds Industrial Lighting business and Life Safety Division’s Emergency Lighting product lines in Europe, the Middle East and Africa will remain with Eaton. A copy of the letter can be found here.
This potential transaction will be discussed today during the company’s annual investor conference. Following the event, access to the conference materials will be available to all interested parties via a link on the center of Eaton’s home page. An audio replay of the webcast will be available at the same link.
Eaton is a power management company with 2018 sales of $21.6 billion. Its energy-efficient solutions help customers effectively manage electrical, hydraulic and mechanical power more reliably, safely and sustainably. The company is dedicated to improving the quality of life and the environment through the use of power management technologies and services. Eaton employs 99,000 people worldwide and sells products to customers in more than 175 countries. For more information, visit Eaton.com.
This post contains part of a news release from Eaton that includes forward-looking statements about Eaton’s intention to pursue a tax-free spin-off of its Lighting business. These statements should be used with caution and are subject to various risks and uncertainties, some of which are outside of the company’s control. The following factors could cause actual results to differ materially from those in the forward-looking statements: Eaton’s ability to receive all required approvals and consummate the spin-off transaction and Eaton’s ability to complete the transaction on a tax-free basis. There can be no assurance regarding the ultimate timing of the proposed transaction or that the transaction will be completed. We do not assume any obligation to update these forward-looking statements.
Kelly Jasko, Corporate Communications, + 1 440-523-5304, firstname.lastname@example.org
Don Bullock, Investor Relations, +1 440-523-5127
By J Allen